LP profile · Pension fund
The Pension Benefit Guaranty Corporation (PBGC)
The Pension Benefit Guaranty Corporation (PBGC) is a pension fund headquartered in United States (North America). Ranked #24 in the 2026 Dealroom Power Law LP Ranking by realised power-law score across its venture commitments.
Historical Background
- The Pension Benefit Guaranty Corporation (PBGC) was established in 1974 under the Employee Retirement Income Security Act (ERISA).
- Its creation was a response to the termination of several large pension plans in the 1960s and 1970s, which left many retirees with a fraction of their promised benefits.
Source of Capital
- The PBGC is a self-financing federal corporation and does not use taxpayer dollars for its operations.
- Its primary sources of funding are insurance premiums paid by the sponsors of defined-benefit pension plans, assets from terminated plans that it takes over, and investment income.
Major Events
- No information available.
Allocation Strategy
- The PBGC's investment policy is designed to ensure the agency can meet its long-term obligations to retirees.
- The allocation strategy involves a diversified portfolio, with a significant portion invested in a custom liability-driven investing (LDI) fixed-income portfolio designed to hedge interest rate risk.
- A smaller portion of the portfolio is allocated to return-seeking assets, including equities and other growth-oriented investments, to improve the agency's overall financial position.
Sources
- https://www.pbgc.gov/about/who-we-are/pg/history-of-pbgc
- https://www.pbgc.gov/sites/default/files/documents/pbgc-investment-policy.pdf
- https://www.pbgc.gov/guidance/allocation-assets
- https://en.wikipedia.org/wiki/Pension_Benefit_Guaranty_Corporation
- https://epicforamerica.org/education-workforce-retirement/epic-explainer-the-pension-benefit-guaranty-corporation/